Customization: Ideal Varieties, Product Uniqueness and Price Competition
We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in equilibrium.
|Date of creation:||31 Jan 2009|
|Date of revision:|
|Publication status:||published in Economics Bulletin 2009|
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- Oksana Loginova & X. H. Wang, 2009.
"Customization with Vertically Differentiated Products,"
0903, Department of Economics, University of Missouri.
- Oksana Loginova & X. Henry Wang, 2011. "Customization with Vertically Differentiated Products," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(2), pages 475-515, 06.
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- Alexei Alexandrov, 2006.
1435, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Rajiv Dewan & Bing Jing & Abraham Seidmann, 2003. "Product Customization and Price Competition on the Internet," Management Science, INFORMS, vol. 49(8), pages 1055-1070, August.
- Bernhardt, Dan & Liu, Qihong & Serfes, Konstantinos, 2007. "Product customization," European Economic Review, Elsevier, vol. 51(6), pages 1396-1422, August.
- Nan Xia & S. Rajagopalan, 2009. "Standard vs. Custom Products: Variety, Lead Time, and Price Competition," Marketing Science, INFORMS, vol. 28(5), pages 887-900, 09-10.
- Nikolaus Franke & Martin Schreier, 2008. "Product uniqueness as a driver of customer utility in mass customization," Marketing Letters, Springer, vol. 19(2), pages 93-107, June.
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